Bitcoin, the world’s most expensive cryptocurrency, will soon become a method of payment in German-speaking Liechtenstein. Daniel Risk, who serves as both prime minister and finance minister of the world’s sixth-smallest nation, announced the development earlier this week. The move is expected to avoid exchange rate risk by accepting bitcoin deposits and converting them immediately into the country’s native fiat currency, the Swiss franc. At the time of writing this news, bitcoin was trading at $27,710 (roughly Rs. 22.7 lakhs), which is equivalent to CHF 24,658.
“With Bitcoin A Payment Option Is Coming,” Risch Allegedly German business daily Handelsblatt said.
for the initial period of acceptance bitcoin payment, this provision will be introduced only for some government services. What these services will be, it has not been disclosed at the moment.
In the future, Ricci is also open to investing state reserves in bitcoin. However, he is confident that bitcoin will not soon gain the same financial status and authority as the Swiss franc.
The cryptocurrency, which was founded in 2009, has soared to $68,000 (roughly Rs. 55.7 lakhs) in terms of its value.
The US, at present, is going through turmoil in its traditional financial system with back-to-back bank collapses and frequent hikes in interest rates. Countries around the world are looking to reduce their reliance on the US dollar as a reserve currency or medium of exchange. This phenomenon is also called ‘De-Dollarization’,
Global financial giants such as Morgan Stanley and JP Morgan Asset Management have predicted a decline in the dollar’s strength amid additional controls from the US Federal Reserve.
under the circumstances, cryptocurrency Has emerged as a preferred investment instrument for experimenting with investors as well as financial regulators.
For example Zimbabwe is to explore Launch of a gold-backed digital asset to stabilize its economy in the face of dollar volatility.
For now, it is unclear how long until Liechtenstein will start dabbling in bitcoin for mainstream use.
Risch noted that while he understands the element of volatility associated with cryptocurrencies, he believes the time may be right to introduce cryptocurrencies as part of the existing financial system.
“Cryptocurrencies like bitcoin are still very risky. But this assessment can certainly change,” said the Liechtenstein PM.